How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ash Your Own Question
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
Type Your Law Question Here...
Ash is online now

I am looking to protect me a seller of shares in my business

This answer was rated:

I am looking to protect me a seller of shares in my business from the buyer failing to pay. The amount is to be paid over a period of 3years. An initial amount on completing the agreement and then further 2pYments on each anniversary. Can I protect myself in any way if the buyer fails to make payments?
Hello my name is ***** ***** I will help you.
Do you intend on having any form of contract?
Customer: replied 2 years ago.
Yes a Share Purchase Agreement.
If you have an agreement and the details are within this agreement, if he breaks it then you can sue for breach of contract and claim losses. If you do that and get a County Court Judgment you can charge the shares you sold to him and claim them back!
So make sure it is in the share purchase agreement what happens if he defaults in any way.
Can I clarify anything for you about this today please?
Customer: replied 2 years ago.
So if it is not in the agreement as to amounts to be paid and by when then no breach of contract and no default?
If the formula is there yes. If nothing is there no, but maybe depending on wording, but it must be in the contract.
Does that help?
I am just following up to see if there is anything else I can help with?
If you have not done so already might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.
If you need more help please click reply.
Customer: replied 2 years ago.
Hi Alex. One finL thing. When you say charge the shares and claim back what do you mean?
You get a charge over them so they can't be transferred or sold
Does that help?
Ash and 2 other Law Specialists are ready to help you